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Article
Courtesy of The News-Press By MARK
S. KRZOS
Published
October 27, 2010
But the Chapter 9 filing was not accepted by Gov. Charlie Crist’s office, which means that Stoneybrook residents may face assessments to keep the public golf course from closing.
The Community Development District — a governmental body — runs the course, which is separate from the gated Stoneybrook community. Chapter 9 allows for governmental bodies to apply to the state for protection.
Stoneybrook attorney Dan Cox said Crist’s office didn’t provide detailed reasons for the denial. “They felt that we haven’t explored all our options,” he said.
One will be assessing the community’s 1,119 homeowners. Without an influx of $300,000, the course could be forced to close, said Ron Ritschel, development district chairman. That means each homeowner could expect to pay about $300. They pay nothing now.
A public meeting on the issue is set for Nov. 17.
“As a golfer, I don’t want to see it close,” said John Blakeley, president of Stoneybrook’s Masters Association. “I think the CDD should do whatever it can to keep it open.”
Refiling for bankruptcy protection isn’t off the table, either.
“Our intent is to go back to the governor’s office after (election day Nov. 2) and reapply,” Ritschel said. “I feel like we got stuck with a bad deal.”
A long dispute
The bankruptcy filing is the latest setback for a community that has dealt with deteriorating greens, vandalism on one hole and a dispute with its builder and lenders.
That dispute extends almost a decade to when the golf course and the community were being built, Ritschel said during a meeting with Bruce Harwood, head golf pro, and Matthew Nieder, director of golf and grounds.
In 1998, revenue bonds of $9.6 million were issued to US Homes, now Lennar, to build the golf course. The development district board consisted of US Homes employees and associates. Residents didn’t take control of the development district until 2004.
The National Golf Foundation put together a business forecast for US Homes before the course opened in 1999. The plan showed that the course could meet debt service requirements, which came to $900,000 annually.
The foundation’s plan also showed that the golf course could stand on its own by 2003, Ritschel said.
Market collapses
The development district signed off on the deal, and there was an informal agreement that US Homes/Lennar would subsidize any shortfall in debt service, Ritschel said.
But after the housing industry collapsed, US Homes/Lennar officials had another meeting with the development district in 2007. “They came to us and said, ‘The housing market is down. We can’t afford it anymore. Goodbye and good luck,’” Ritschel said.
Darin McMurray, Lennar’s regional vice president, did not return calls seeking comment.
Later that year, the district met with the bondholder, Wells Fargo, and said that the golf course never made $900,000 a year and that bonds needed to be restructured.
Problems add up
Adding to the course’s financial woes was the state of its greens, which began deteriorating in December, Harwood and Nieder said.
A combination of freezing temperatures, peak golfing season and organic buildup exacerbated the decline, Nieder said.
This spring, the development district went to Wells Fargo for $300,000 to rebuild the greens.
“They gave us the OK on the basis that we go out and get a commercial loan for $300,000 or begin assessing residents,” Ritschel said. “We went to four banks and got four denials. The reason was because the bondholder hasn’t been paid since 2007.”
Looking at options
The development district then decided to shut the course and begin green renovations, somehow hoping to find money. The district thought bankruptcy could keep the course open and generate cash, but Stoneybrook officials learned Oct. 4 that the governor’s office wouldn’t sign off.
The district then met with 100 residents to reveal the remaining options.
“We said we either lay off the remaining people and close the course permanently or operate it with very low capital,” Ritschel said.
The course reopened with new greens Oct. 10.
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